Showing posts sorted by relevance for query PRIMITIVE ACCUMULATION. Sort by date Show all posts
Showing posts sorted by relevance for query PRIMITIVE ACCUMULATION. Sort by date Show all posts

Monday, June 17, 2024

Ian Angus’s ‘The War Against the Commons’: A vital new history of the bloody rise of capitalism

Steve Leigh
12 June, 2024


First published at Firebrand.


In Marxist theory, primitive accumulation is, as Marx defined it in Capital Volume I, “the historical process of divorcing the producer from the means of production.” Occurring at different times in different regions around the world, primitive accumulation is the stage of history during which the ruling class took wealth from the lower classes — unjustly, usually by force or by theft — in order to accumulate the capital they would need to become the capitalist class.

The War Against the Commons: Dispossession and Resistance in the Making of Capitalism is an excellent new book on this history from Canadian ecosocialist Ian Angus. It is a beautifully written examination of the rise of capitalism and the destruction of peasant livelihoods as the centuries-old social relations of feudalism were abandoned for a new mode of production. Though it largely focuses on the transformation of feudalism into capitalism in England and Scotland, it has many implications for socialist organizing and for environmentalism today.

Angus’s book is especially valuable for the way it sharply refutes the reactionary thesis of “the tragedy of the commons.” It also provides substantial clarity on Marx’s views of, as he put it, “so-called primitive accumulation.”
The rise of capitalism required the war on the commons

In The War Against the Commons, Angus argues that for hundreds of years, peasants had successfully managed common land to the benefit of all. They democratically decided on its use and did not over-exploit it as the reactionary thesis contends. Often peasants repartitioned the private strips of land around the common area to give every family enough land to survive.

Of course this was not some agrarian utopia. Under feudalism, landlords ruthlessly exploited the masses of peasantry, either as serfs, who were kept in bondage, or as free farmers who were still very much tied to the land. Peasants paid rent or performed service on the lord’s demesne (the lord’s private land, attached to their manor), or both. Peasants’ rights were limited and were at the whim of the lord when it came to justice. During times of war they might be called on to fight and die for the lord’s material interests.

But in return for that exploitation, peasants were allowed the collective use of common areas. The commons were absolutely essential to the livelihoods of the peasants.

Beginning with the rise of the market economy in the 15th century, landlords were under more pressure to raise revenue. As Angus writes, “Landed families which stuck to the old ways, left rents as they were and continued to grant long leases soon found themselves trapped between static incomes and rising prices.”

There were several related strategies employed by the landlords during this period of primitive accumulation: raising rents, enclosing the commons and adding it to their demesnes, consolidating farms into larger units, and replacing farming with sheep raising. The latter required less labor and created higher profits. Overt time, the economic differentiation of the peasantry — some peasants growing more wealthy while others slipped further into poverty — aided the landlords’ efforts.

The peasant class did not just go along with these land grabs and forcible changes to the previous social arrangement. They continually resisted these attacks that denied their livelihood, and peasant revolts broke out from time to time throughout this entire process.

These revolts peaked at particular times, sometimes culminating in revolutionary situations, such as Wat Tyler’s Rebellion in 1381. More often they involved re-taking common lands by tearing down fences and hedgerows. In the 1640s, these peasant revolts intersected with the English Revolution and Civil War.

According to Angus, the peasant revolts did not fuel either side of the Civil War exclusively. Though the Parliamentarians at first seemed to take the side of the peasants against the Royalists, in the end the consolidation of power by Parliament furthered the accumulation of land in the hands of the landlords.

The most radical elements during this period were the Diggers, who tried to extend communal ownership of land both physically and through political organizing.

At the beginning of the war against the commons, the English Crown tried to restrain enclosures. They feared depopulation that would deny the needed soldiers for war; and they also feared social unrest.

Thus, the Crown passed laws to slow down the enclosure process. But landlords, who often controlled the local justices of the peace, prevented effective enforcement of these laws. Over time, Crown resistance to land consolidation and enclosure waned as the new capitalist relations dominated the economy more and more.

Angus also examines the role of the “commonwealth men” who were theoretically against capitalist development, but also opposed peasant resistance to the rising power of capitalism. They were similar to the “feudal socialists” whom Marx and Engels denounced in the Communist Manifesto — the aristocrats who railed against the exploitation of the new capitalist order and attempted to sway the proletariat to their side, while still holding deeply reactionary views. “What they upbraid the bourgeoisie with is not so much that it creates a proletariat,” they wrote, “as that it creates a revolutionary proletariat.”

Despite the peasant revolts, the dominant trend was toward enclosure and consolidation as rural residents were expelled from the land. Many became vagabonds who tried to survive by begging and stealing. Over time, the peasants who were kicked off the land became the basis of the working class that capitalism needed in industry. Thus, primitive accumulation created the proletarian class even as it destroyed feudalism.

During this era, rural people with small cottages entered the capitalist system directly by working for capitalists as weavers or in other trades under the “putting-out system.” Under this system, merchants would sell raw materials to cottagers who would work it up into products. Merchants would then buy the finished product back at a fixed rate, rather than pay a wage.

Marx called this the “formal subsumption” of labor to capital as opposed to the “real subsumption” of wage labor.
Wage labor was the last resort

When peasants were expelled from the land, wage labor was the last resort for survival. Thus, people saw wage labor as another form of slavery. As Marx wrote in Capital:


A new class of wage-laborers was born in England when great masses of men were suddenly and forcibly torn from their means of subsistence, and hurled onto the labor-market as free, unprotected and rightless proletarians.

Under feudalism, they had largely controlled their own labor. The work day was governed by the weather, seasons, and other natural conditions. Under capitalism, labor was controlled by the clock and working hours were longer.

To enforce wage labor, the state now dominated by capitalism used draconian methods, including actual slavery. “Poaching” was outlawed for the poor who needed food, but hunting was allowed for the rich who did not need it. For a period, England enforced the death penalty for hundreds of offenses, including poaching and petty theft, and also made regular use of transportation to the colonies in Australia and elsewhere.

The destruction of the old rural economy unleashed more people than the rising capitalist economy could absorb. Even if there was not enough wage work available, vagabonds were punished for not working for a master. The creation of capitalism was based on the horrific oppression of ordinary people.

This process of consolidating capitalism in England took hundreds of years, from the 15th to the 18th centuries. The practice of enclosure persisted well into the 19th century in England. In Scotland, it happened much faster after the English conquest; the results were equally bloody but much more condensed in time.

Apologists for capitalism contend that it made agriculture much more efficient. Angus thoroughly refutes this, showing that many of these improvements arose during the period of peasant management of the commons.

Angus also shows that caloric intake declined as capitalism rose. “Most industrial workers and agricultural laborers were malnourished,” he writes.

“They were less healthy and died younger than their ancestors a century earlier.” According to Angus, “The expansion of the capitalist world system caused a dramatic and prolonged process of impoverishment on a scale unprecedented in recorded history.”
The destructive birth of capitalism

Importantly, Angus explains Marx’s critical views of the war against the commons. Too many would-be Marxists stress the progressive nature of the rise of capitalism. Marx, on the other hand, saw it as a destructive process, even though it ultimately developed the productive forces that would allow the working class to take power and establish communism. As Marx famously put it, “Capital comes dripping from head to foot, from every pore, with blood and dirt.”

Marx preferred to discuss the war against the commons as “original expropriation” rather than primitive accumulation. Marx ultimately felt that “primitive accumulation” was too neutral a term — which is why he often qualified the phrase as so-called primitive accumulation.

Too many people miss Marx’s sarcasm when discussing this issue. Marx made it clear that capitalists stole their wealth from others rather than amassing it through hard work or intelligence, as the capitalist myth would have it. When workers no longer have access to the means of production, they end up having to work for those who stole it from them.

A large part of this original theft came from colonization. Angus explains the process of wealth seizure in the colonies as a further basis for the accumulation of capital in England. The effects on the native population of the Western Hemisphere and on enslaved Africans are well-known. As Marx wrote in Capital: “The veiled slavery of the wage-laborers in Europe needed the unqualified slavery of the New World as its pedestal.”

He goes on:


The discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the indigenous population of that continent , the beginnings of the conquest and looting of India, and the conversion of Africa into a preserve for the commercial hunting of blackskins, are all things which characterize the rosy dawn of the era of capitalist production.

Thus the issues raised by this history are directly relevant to anticolonial and antiracist struggles today.
Debates on the left and the ongoing relevance of the history of accumulation

According to Angus, the war against the commons continues to this day. He believes Marx saw expropriation as a continual basis of capitalism, not just a contained process occurring at its dawn. Though capitalism now dominates the world economy, the dispossession of the world’s peasantry continues. Capital still accumulates through expropriation.

This bears on current political controversies on the left. David Harvey, for example, focuses in his writings on current “accumulation by dispossession.” Harvey seems to downplay the importance of the basic process of mature capitalism: accumulation by exploitation — in other words, not paying workers the full value of what they produce. Angus does not explicitly endorse Harvey’s position but does argue the importance of the continuation of expropriation of peasant land.

This is an important emphasis which solidifies our understanding: “Since the late 1900s, capital’s continuing war against the commons has dispossessed millions of peasant families in Africa, Latin America and Asia.”

Modern-day peasant resistance to being forced off their land is certainly a struggle that the left should support. Peasants can be allies with workers in the war against capitalism — Marx agreed with this approach. Angus notes the positive attitude Marx had toward the peasant communes in Russia. He thought they could become the basis of a transformation to communism — but importantly only if connected to the international working-class revolution. Marx rejected a utopian view of the peasant commune.

Nor does Marx’s attitude mean that Marxists support the preservation of peasant property even after the working-class revolution. The goal is still collective control of the whole economy, including land, by the population as a whole.

In spite of the need for Marxists to defend the remaining commons, the current context is important. In the period that Angus focuses on in early modern England, capitalism was still forming. Most of the world was pre-capitalist. The seizure of the commons was absolutely essential to the rise of capitalism.

Today, the situation has been transformed. The world economy is now universally capitalist. Even the remaining peasant agriculture is largely commercial and integrated into the capitalist market. Subsistence agriculture, which was the essence of agriculture during the rise of capitalism, is now more marginal.

Over the last 141 years since Marx’s death, much of the common land has been taken by capitalists. The expropriation of peasant land today is a transfer of wealth among participants in the capitalist system. It is no longer the destruction of a pre-capitalist mode of production to make way for capitalism. Today, expropriation is an important supplement to exploitation, but only a supplement.

Contra Harvey, the main emphasis of anticapitalists today needs to be resistance against the exploitation of workers, and opposition to the oppression that divides workers. The form of a worker-peasant alliance will differ from country to country, but defense of peasants should be integrated into the working-class revolution rather than being seen as a separate struggle.

Angus argues that Marx and Engels were more flexible and less dogmatic than later Marxists are. He discusses how Engels was reluctant to give advice to Russian activists because of ignorance of Russian politics. Angus also says that Marx and Engels supported assassination as a political strategy in Russia even while opposing it in Britain.

This attitude is an important corrective to dogmatism. Marxists need to understand the political and economic situation before pronouncing on it. We must learn before we can teach! However, the world has transformed in the last 140 years. The spread of the capitalist system across the world means that Marx’s strategies for the capitalist countries in the 1880s are more applicable across the world today than they were in his time. Although we need to understand the specifics of each situation, the broad contours of the focus on working-class struggle are applicable everywhere. The Communist Manifesto’s famous conclusion, “Workers of the world unite; you have nothing to lose but your chains,” is even truer today than when Marx and Engels wrote it.

This shift is shown by the changing strategy of Russian Marxists, including the Bolsheviks, before the Revolution. As capitalism developed in Russia in the early 20th century, they moved away from Marx’s positive attitude to the Narodniks, who were oriented to the peasantry. Instead, they focused on organizing the industrial working class.

Finally, Angus raises the very important issue of overcoming the division between the town and country. Marx and Engels were very clear on the importance of spreading the population rather than having it concentrated in cities. They saw this as similar to the abolition of class division. In The Housing Question (1878), Engels wrote, “The abolition of the antithesis between town and country is no more and no less utopian than the abolition of the antithesis between capitalists and wage workers.”

The War Against the Commons is a brilliant examination of the rise of capitalism. It smashes some of the bases of capitalist ideology, and vindicates the possibility of democratic control of the earth. It makes a valuable contribution to current debates on the left, connecting anticapitalism to defense of the environment. It shows that capitalism has always been opposed to ecological sanity — for example demonstrating the direct connection between capitalism and fossil fuels, especially coal.

For all these reasons, it is a must-read for socialists and for all who care about the future of humanity and the planet.


Steve Leigh (he/him) is a founding member of Firebrand and the Seattle Revolutionary Socialists. He has been an active Marxist since 1971 and was a founding member of the International Socialist Organization. He was a shop steward in SEIU for 35 years and is a member of the retirees chapter of SEIU 925. Read more from Steve on his blog.

Monday, November 04, 2024

 


The Dialectics of Wealth and Poverty



Prabhat Patnaik 



There is a lacuna in the 2024 Economics Nobel Prize winners looking at poverty as arising from an absence of development rather than being a dialectical accompaniment of growth itself.

This year’s Nobel Prize in economics (the Riksbank Prize to be more precise) has been awarded to three US-based economists for their research into what promotes or hinders the growth of wealth among nations; and they assign a crucial role to institutions, arguing that Western institutions, like electoral democracy, are conducive to growth. Where colonialism led to the promotion of what they call “inclusive institutions” such as in settler colonies, growth flourished, but elsewhere in the colonial empire, where colonialism set up “extractive institutions”, they turned out to be harmful for growth.

Their work has aroused much criticism. Some have argued that their argument lacks substance: the growth-success of East Asia is accompanied by a lack of Western-style democracy, and of a corruption-free environment; indeed, corruption characterised the Western countries in their period of high growth.

Others have argued that the contrast between the colonies of settlement and other colonies can be attributed to the former receiving as immigrants the “kith and kin” of Western populations. Still others have been critical of the authors’ apotheosising Western institutions and of their being silent on the extreme oppression unleashed by colonialism.

Our purpose here is not to discuss these authors’ arguments but to underscore a basic lacuna in their very perception of growth and under-development, a lacuna that characterises the perception of even their critics, no matter how right these critics may otherwise be. This lacuna consists in their looking at poverty as arising from an absence of development rather than being a dialectical accompaniment of growth itself. The picture they implicitly subscribe to is of a race, where some countries with good (“inclusive”) institutions moved ahead while others with bad (“extractive”) institutions stayed behind.

What this picture misses is that the staying behind of some is because the others moved ahead, that capitalist growth produces poverty. The late Andre Gunder Frank had coined a phrase to describe this phenomenon: the development of under-development, which emphasised that under-development was not lack of development but itself a specific form of development that accompanied what we generally recognise as “development”. There is a complete absence of recognition of the dialectics between development and under-development or between the growth of wealth at one pole and poverty at another in the argument of the awardees of the Riksbank Prize.

The basic reason for this dialectics of the growth of wealth accompanying the growth of poverty, and its international counterpart, namely, the development of some countries accompanying the under-development of others lies in the following: capitalist growth is necessarily accompanied by a process of primitive accumulation of capital, entailing the expropriation and hence impoverishment of a mass of petty producers; but the number of persons engaged within the capitalist sector, those whom it assimilates as workers directly, are just a fraction of those impoverished.

The absolute numbers of the victims of primitive accumulation of capital who remain “outside the system” keep increasing as capital accumulation proceeds; or, if their absolute numbers do not increase but either remain constant or decline, then the extent of poverty increases among them. But a decline in both, the numbers impoverished by the system but remaining outside of it, and the extent of poverty of such persons, is ruled out by the fact that primitive accumulation is a ceaseless process.

It is this phenomenon which explains why the accumulation of wealth at one pole is simultaneously accompanied by the growth of poverty at another. The perception of this phenomenon, however, is typically obscured by the absence of a comprehensive vision of the totality of the accumulation process; attention is focussed only on a particular part of it, which gives an erroneous impression.

In the course of the long boom of capitalism, stretching from the mid-19th century right until the First World War, when capitalism consolidated itself as a global system, this dialectic of wealth and poverty worked as follows. There was a spread of capitalism from Britain to continental Europe and further to the temperate regions of European settlement, like Canada, the United States, Australia, New Zealand and South Africa.

The mechanism for this was a diffusion of industry to these areas of settler colonialism, made possible by Britain not only keeping its own market open to imports from these regions, but additionally exporting capital to them to accompany the massive out-migration from Britain and the rest of Europe to these regions.

The scale of European migration was estimated to be at least 50 million between the end of the Napoleonic war and the First World War. Those who migrated, dispossessed the local populations of their land; those of them who did not die fighting, or from the new diseases to which they were now exposed, were herded into “reservations”. The migration from Britain alone was so large that almost half the natural increase in Britain’s population each year, is estimated to have left its shores for the “New World” during this period.

Since the British market was open to both primary sector and industrial exports from these newly-industrialising countries of settlement and in addition Britain also made capital exports to these same countries, it ran up large balance of payments deficits vis-a-vis them.

Besides, Britain’s import surplus from these regions would have normally caused some de-industrialisation in the British economy creating unemployment and generating pressures to protect the British market against imported goods. This was averted because British goods, including above all cotton textiles that had spearheaded the Industrial Revolution, and that were being produced far in excess of the needs of its own domestic market, were exported to its tropical colonies; Eric Hobsbawm refers to Britain’s increasingly selling in the (tropical) colonies what it could not at home, as a “flight to the colonies”. Such exports caused in turn de-industrialisation in these colonies where the traditional artisans and craftsmen, above all spinners and weavers, lost their occupations and were thrown onto the land causing an increase in rents, a decline in wages, and a rise in mass poverty.

Britain’s balance of payments deficits vis-à-vis the “newly industrialising countries” of that period, were covered substantially by two items it earned from the tropical colonies: one was the de-industrialising exports to these colonies referred to above. The other was the drain of wealth, namely one-way transfers, from these colonies to Britain: the entire annual export surplus earnings of countries like India were siphoned off by Britain without any quid pro quo and helped to pay for Britain’s deficit vis-à-vis its settler colonies and other “new industrialisers”.

This system worked because these tropical colonies had a merchandise export surplus vis-à-vis the European Continent, the New World as well as Japan. India’s massive merchandise export surplus with these countries, the second largest in the world for many decades, arose from its ability to supply the primary commodities they required for their industrialisation. These export surplus earnings were entirely appropriated gratis by Britain to pay for its own deficit vis-à-vis the “New World”. It was gratis because Britain ‘paid’ the peasantry for their export goods out of their own taxes; this was perhaps the most important source of generating poverty in the tropical colonies.

The growth of wealth in the settler colonies and elsewhere during what Hobsbawm calls the “long nineteenth century” (stretching up to the First World War) had as its counterpart the growth of poverty, including periodic famines, in the tropical colonies which were colonies of conquest (as distinct from colonies of settlement).

Lest it be thought that countries like India were always as poor as they were at the time of Independence, an estimate by Shireen Moosvi, the economic historian, is worth citing here. She estimates the per capita income of Mughal India from the revenue figures given by Abul Fazl for 1575 and compares it with the per capita income figure provided by S Subramonian for the whole of India for 1910, and finds the latter to be lower than the former in real terms.

The spread of industrial capitalism in the long 19th century was made possible by sucking out a part of the surplus from tropical colonies; the market access provided to the “new industrialisers” by Britain had as its counterpart the encroachment by Britain into the markets of its tropical colonies. Both these were part of a process of primitive accumulation of capital which produced modern mass poverty in these colonies; but the beneficiaries of this primitive accumulation of capital were the temperate regions of European settlement which witnessed a massive increase in their wealth.

The accumulation of wealth and the accumulation of poverty were thus dialectically related. But bourgeois economics would never admit this fact.

Prabhat Patnaik is Professor Emeritus, Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi. The views are personal.

Wednesday, May 19, 2021

Tracking DarkSide Ransomware Gang's Profits
Elliptic Says It Traced Payments by Colonial Pipeline and Many Others

CRIMINAL CAPITALI$M = PRIMITIVE ACCUMULATION OF CAPITAL

Doug Olenick  • May 18, 2021
Ransom payment amounts generated by DarkSide ransomware (Source: Elliptic)

The DarkSide ransomware gang apparently collected over $90 million in ransom payments from about 47 victims, including Colonial Pipeline Co., since the gang began operating in August 2020, according to the blockchain analytics firm Elliptic, which says it analyzed bitcoin wallet activity

Using the ransomware-as-a-service model, the DarkSide gang, which says it shut down operations as of May 13, provided malware to affiliates, who infect targeted computer systems and negotiate ransom payments. The DarkSide gang reportedly took a 25% share for ransoms less than $500,000, gradually decreasing to a 10% share for ransoms greater than $5 million, with the affiliates getting the remainder, writes Tom Robinson, Elliptic's co-founder and chief scientist, in a blog Tuesday.

"This split of the ransom payment is very clear to see on the blockchain, with the different shares going to separate Bitcoin wallets controlled by the affiliate and developer," Robinson writes. "In total, the DarkSide developer has received bitcoins worth $15.5 million (17%), with the remaining $74.7 million (83%) going to the various affiliates."

The DarkSide Operation


Elliptic says it identified 47 bitcoin wallets that made ransom payments to Darkside.

About 100 DarkSide attacks have been identified, so apparently almost 50% of the gang's attacks resulted in a ransom payment, with an average payment of $1.9 million, according to Elliptic's analysis.


Source: Elliptic

DarkSide's moneymaking empire started off slowly but peaked in February, when the group and its affiliates brought in just over $20 million, Elliptic says, based on its wallet research. Ransom payments totaled roughly $15 million in March, $8 million in April and $14 million in May, Elliptic reports.

Robinson says Elliptic, using proprietary blockchain analysis tools, tracked Colonial Pipeline paying DarkSide more than $5 million in two separate payments to a wallet on May 8 and May 10.

"May was set to be a record month, until DarkSide reportedly shut down its operations on May 13 and its bitcoin wallet was emptied," Robinson says.

In response to increased scrutiny from the cybersecurity industry and the federal government over the gang's attack on Colonial Pipeline Co., DarkSide announced it was abandoning its ransomware-as-a-service operation, issuing decryptor keys and making some financial restitution to its affiliates for lost business.

The cyber gang said it had lost contact with the infrastructure that enabled it to conduct ransomware operations and work with its affiliates (see: DarkSide Ransomware Gang Says It Has Shut Down).

On Tuesday, Brett Callow, threat analyst with Emsisoft, said DarkSide remained dark.
Colonial Pipeline's Payments

Elliptic says it determined that on May 8, 75 bitcoins, worth about $5 million at the time, were deposited by Colonial Pipeline into a DarkSide wallet, with another payment worth $320,000 added on May 10.

"Our analysis shows that the wallet has been active since 4th March 2021 and has received 57 payments from 21 different wallets. Some of these payments directly match ransoms known to have been paid to DarkSide by other victims, such as 78.29 BTC (worth $4.4 million) sent by chemical distribution company Brenntag on May 11," Robinson says.

Elliptic says it was able to zero in on the Colonial Pipeline payments because they originated from the currency exchange previously used by the pipeline company.

On May 9, the day after Colonial made its payment of 75 bitcoins, DarkSide removed a large portion of the bitcoin from its primary wallet, Elliptic says. The analytics company says that on May 13, the $5 million that remained in the wallet was removed by an unknown source.

"There has been speculation that the bitcoins were seized by the U.S. government," Robinson writes in a May 14 blog.

Money Laundering


"By tracing previous outflows from the wallet, we can gain insights into how DarkSide and its affiliates were laundering their previous proceeds," Robinson also writes. "What we find is that 18% of the bitcoin was sent to a small group of exchanges. This information will provide law enforcement with critical leads to identify the perpetrators of these attacks."

DarkSide sent another 4% of the money to a darknet money laundering marketplace named Hydra, which offers various criminal services, Elliptic says, based on its tracking.

"Hydra offers cash-out services alongside narcotics, hacking tools and fake IDs. These allow bitcoin to be converted into gift vouchers, prepaid debit cards, or cash rubles. If you're a Russian cybercriminal and you want to cash out your crypto, then Hydra is an attractive option," Robinson says.

Elliptic hopes that by identifying the bitcoin wallets used by DarkSide, fintech companies and crypto exchanges can be alerted to any client deposits that originate from a DarkSide wallet.

With this knowledge, "they can ensure that DarkSide and other ransomware operators cannot cash-out or exchange their bitcoin proceeds, disincentivizing this activity," Robinson says.

Dying Gasp Attack?


The day after DarkSide's May 13 declaration that it was shutting down, European subsidiaries of the Toshiba Tec Group confirmed they had been struck with a ransomware attack, Reuters reports. DarkSide was apparently responsible for this attack, based on research from the Japanese security firm Mitsui Bussan Secure Directions.

Toshiba says it immediately shut down communications between its European entities and Japan to stop the attack from spreading.

"As far as the investigation result shows, the group recognizes that it is possible that some information and data may have been leaked by the criminal gang. We will continue to conduct further investigation in cooperation with external specialized organization to grasp the details," the company said.

Toshiba has not released any additional information regarding the attack and has not responded to a request for additional information.

Data breach detection, prevention and notification - DataBreachToday

About the Author
Doug Olenick
News Editor, ISMG
Olenick has covered the cybersecurity and computer technology sectors for more than 25 years. Prior to joining ISMG as news editor, Olenick was online editor for SC Media, where he covered every aspect of the cybersecurity industry and managed the brand's online presence. Earlier, he worked at TWICE - This Week in Consumer Electronics - for 15 years. He also has contributed to Forbes.com, TheStreet and Mainstreet.


  1. Marx's theory of primitive accumulation: a suggested ...

    https://libcom.org/library/marx-primitive-accumulation...

    2005-08-05 · If any sense is to be made, therefore, of the notion of a 'primitive accumulation' (in Marx's sense of the term) prior in time to the full flowering of capitalist production, this must be interpreted in the first place as an accumulation of capital claims - - of titles to existing assets which are accumulated primarily for speculative reasons; and secondly as accumulation in the …


Sunday, August 27, 2023

How 'shrink' became the biggest story in retail
SHRINK IS NOT WHAT YOU THINK


Hamza Shaban
·Senior Reporter
Sat, August 26, 2023

Retail theft, or "shrink," as business executives put it, has run wild.

In waves of earnings calls, references to shrink resemble the retail industry's upside-down version of mentioning AI. But instead of generating hype, citing shrink softens the blow of sinking profits.

The most prominent mention of shrink in recent weeks came from Dick's Sporting Goods (DKS).

On a call with analysts following its Aug. 22 earnings report, CFO Navdeep Gupta said, "The biggest impact in terms of the surprise for Q2 primarily came from shrink." Gupta went on to say, "The number of incidents and the organized retail crime impact came in significantly higher than we anticipated." The company cut its full-year profit outlook in response.

The theme of missing merchandise also featured in recent calls from Dollar Tree (DLTR), Macy's (M), Home Depot (HD), and Target (TGT).


Dick's Sporting Goods profit slipped in its second quarter and missed Wall Street's expectations as the retailer cut its full-year profit outlook, citing worries over theft at its stores. (Seth Wenig/AP Photo, File)

Analysts say the trend reflects a real problem for retailers, and one that they are taking steps to prevent.

"Nobody wants to come out and say, 'We are not in control,'" said David Johnston, NRF vice president of asset protection and retail operations. "To see the number of CEOs coming out and talking about shrink and loss — it's an issue."

Dollar Tree, for instance, told investors it is installing locked cases on more items and even taking some SKUs out of stores in response to elevated theft. "We are now taking a very defensive approach to shrink," Dollar Tree CEO Rick Dreiling told analysts this week.

And as executives continue to hammer on the industry-wide threat coming from shrink, the concept has gathered momentum and can work as a crutch for explaining weaker financial performance.

"There is a bandwagon effect here," said Neil Saunders, a retail analyst at GlobalData. "When one retailer starts to call something out, others will look at it. And because everyone is interested in it, that fuels more mentions of theft."

Growing 'shrink'

But data suggests that behind a new industry-wide excuse for business slowing down is an uptick in theft and increasing concerns for safety.

Retailers say that shrink amounted to $94.5 billion in 2021, according to the National Retail Federation’s (NRF) annual of survey of companies, up from $90.8 billion in 2020. As a percentage of sales, however, that figure came out to about 1.4% of sales, down from 1.6% in 2020.

Retailers also reported a 26.5% increase in organized retail crime incidents, when groups of professional shoplifters steal and resell stolen goods. While the latest figures are nearly two years old, sustained commentary from executives suggests that shrink is a growing problem for them,.

Jonathan Simon, a criminal justice professor at UC Berkeley School of Law, said businesses probably do have relatively accurate estimates of how much their inventory is shrinking due to theft. And that it's possible retail theft has increased partially because of online resale platforms, which serve as a conduit for organized theft for profit.

"But businesses also have an incentive to place more emphasis on theft as it shifts the responsibility for business shrinkage — never a good look to investors or customers — to an abstract but blameworthy factor like organized crime," he said.


The public also has a tendency to place all retail theft in the same category, he added, lumping together organized theft, survival theft by unhoused or very poor people, and teenagers and younger adults acting out by stealing. "Each of these really needs to be seen as distinct problems with distinct solutions."


A Nordstrom department store at the Grove mall in Los Angeles, where a smash-and-grab robbery drew attention to organized retails thefts. 
(Jae C. Hong/AP Photo, File)


Beyond the 'smash and grab'

The dramatic crime figures and sensationalized videos that have drawn broader public attention have also invited criticism that the problem might be overblown.

In a widely covered backtrack, Walgreens CFO James Kehoe said earlier this year that the pharmacy chain "cried too much" about theft on a prior earnings call that was among the first to ignite concerns about retail crime.

But retail industry experts insist this quarter's references to shrink aren't merely executives crying wolf.

Janine Stichter, a research analyst covering consumer retail and lifestyle platforms at BTIG, said citing shrink figures isn't something that you can fake for very long.

Stichter sees the timing of shrink's big moment in earnings calls, which picked up at the end of last year, as coinciding with price increases and a weaker economic environment, highlighting a link between crime and a tougher economy.

Under the strain of higher costs, consumers squeezed by inflation, and shifts in shopping habits, the industry faces a host of challenges even without the pain and risks of theft.

"Shrink is clearly an issue, but so is the tremendous volatility that the consumer and retail has experienced over the last nearly four years," said Ethan Chernofsky, senior vice president of marketing at Placer.ai, a location analytics firm.

"The pandemic presented a unique set of circumstances and just when we expected a period of normalcy as the pandemic's effects faded, a wide array of economic challenges disrupted retail 'normalcy.'"

Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on Twitter @hshaban.

Indeed.com

https://www.indeed.com/career-advice/career-development/shrinkage-retail

Feb 3, 2023 ... Retail shrinkage refers to loss of product from causes other than sales. Whether it is from theft, accounting errors or broken items, ...

Nytimes.com

https://www.nytimes.com/interactive/2023/06/02/business/what-is-retail-shrink.html

Jun 2, 2023 ... Rather, shrink is the retail industry's term for lost inventory — items that left a store or warehouse without being paid for. The merchandise ...

Cnbc.com

https://www.cnbc.com/2023/05/31/what-are-retail-shrink-and-organized-retail-crime.html

May 31, 2023 ... Retail shrink refers to the loss of inventory from a variety of factors, including employee theft, shoplifting, administrative or cashier ...


Monthlyreview.org

https://monthlyreview.org/2023/04/01/the-meaning-of-so-called-primitive-accumulation

Apr 1, 2023 ... That is why he preceded the words “primitive accumulation” by “so-called.” Marx's preference for “original expropriation” was not just playing ...

Marxists.org

https://www.marxists.org/archive/marx/works/1867-c1/ch26.htm

This primitive accumulation plays in Political Economy about the same part as original sin in theology. Adam bit the apple, and thereupon sin fell on the human ...

Sunday, October 08, 2006

India Is Now A Capitalist State


India world leader in greasing palms: India doesn't just have loads of corruption at home, it is also the world leader in exporting graft. Months after Transparency International ranked India as among the more corrupt societies in the world, the NGO’s Bribe Payer's Index 2006 shows that Indian exporters are more willing than their counterparts from other countries to pay overseas bribes to secure business, clinch contracts, do deals and generally get on in the world. While this is the third BPI released by Transparency, after the ones in 1999 and 2002, it is the first time India has featured in the index. It was considered too economically insignificant and lacking global spread and reach in the earlier rounds.

And who does India do export business with?

The US, India's biggest market accounting for 17% of India's total exports, the UAE, the second largest trade destination for Indian exports with an 8.5% share.

So who benefits from bribery? Look at which American companies have invested in India recently. And which Indian companies have been dominant players in global corporate takeovers.

US warns India of investment fallout from Coca-Cola, PepsiCo row

Gulf Arabs to pour billions into India real estate

Of course the UAE also has it's own corruption scandals in particular in Dubai, which has a Canadian connection.

India has a long history of corruption encouraged by British Imperialisms use of the Dutch East India Company for their own primitive accumulation of capital.

All capitalism is based upon the primitive accumulation of capital, that is the criminal acquisiton of wealth in its earliest period of development.

Democracy is less important to captialist development than corporate crime resulting from a capitalist state that allows for private accumulation through state policies of deregulation.
See my article; Neo Liberal State Capitalism In Asia

Asia outsourcing: China, India and Southeast Asia as sourcing partners

The irony of these issues of transparency is that the it is based on WTO member capitalist states and their corporations that rate the countries invovled. You know corporations like Enron, Comcast, Apple, etc. all whom have been involved in some form of corporate malfiescence in their own countries. Kettle, pot, black.

See:

India


Mittal

Corporate Crime


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Monday, August 26, 2024

Awareness of Capitalists’ Use of Colonialism 


Encourages International Solidarity



 
AUGUST  27, 2024
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Image by L’Odyssée Belle.

Studying capitalism, Karl Marx examined the Industrial Revolution in Europe. He explored conflict between worker and employer. In their book Capital and Imperialism (Monthly Review Press, 2021), authors Utsa Patnaik and Prabhat Patnaik emphasize that Marx’s followers believed that, with the onset of capitalism, “accumulation [has] occurred only on the basis of the generation of surplus value.” (Surplus value signifies that part of a product’s commercial yield which labor generates and employers keep.)

The Patnaiks recall that Marxists mention another kind of accumulation of wealth, one that “occurred only in the prehistory of capitalism.” According to the authors’ reckoning, however, so-called “primitive accumulation occurred throughout the history of capitalism,” along with surplus value. The term primitive accumulation refers to expropriation, plunder, or stealing.

Many U.S. political activists oppose the overseas wars and interventions their government uses to maintain worldwide political and economic domination. More than a few know about stealing in the peripheral regions of the world at the hands of capitalism. They are aware of U.S. imperialism.

The stolen goods include: land, bodies, raw materials, food crops, forests, water, extractable underground resources, exorbitant interest on debt, and funding owed the world’s poor for subsistence. Non-payment for social reproduction is a kind of stealing.

The more these activists learn that capitalism from its start did call for oppression in the undeveloped regions of the world, the more likely might be their inclination to build an anti-capitalist international solidarity movement. The book authored by the Patnaiks contributes to this end by documenting that colonialism and, implicitly, imperialism have been essential to the development of capitalism.

In describing India’s colonial experience, their book – by no means reviewed here in its entirety – provides an explanation taken from Marx as to why capitalism needed colonialism. It details the workings of capitalist-inspired colonialism in India.

The Patnaiks declare that, “not only has capitalism always been historically ensconced within a pre-capitalist setting from which it emerged, with which it interacted, and which it modified for its own purposes, but additionally that its very existence and expansion is conditioned upon such interaction.” Capitalists sought “appropriation of surplus by the metropolis, under colonialism.” (“Metropolis” is defined as “the city or state of origin of a colony.”)

They explain that “Marx’s basic concept of capitalism [as expressed] in Capital is of an isolated capitalist sector … consisting only of workers and capitalists,” also that an isolated sector implies a capitalism “stuck forever in a stationary state or a state of simple reproduction … [and] with zero growth.” They insist that “a closed self-contained capitalism in the metropolis is a logical impossibility.”

There is “nothing within the system to pull it out of that state.” The economy “will necessarily get to that state in the absence of exogenous stimuli.”

The Patnaiks envision three kinds of exogenous stimuli: “pre-capitalist markets, state expenditure, and innovations.” The first of these represents the colonialism that would be essential to capitalists as they built the economies of European industrial centers.

Inflation a concern

Outlining how British capitalism dealt with colonial India, the authors highlight money as a device for holding and transferring wealth. The object has been to preserve its value. The system had these features:

* Officials in London used the surplus derived from Indian exports of primary commodities to finance the export of capital to other capitalist countries.

* British officials taxed the land of small producers in India, using the revenue to pay the colony’s administrative expenses and purchase commodities for export to Britain; some were re-exported to other countries.

* Britain exported manufactured goods. The flood of them arriving in India led to “deindustrialization of the colonial economy.” Displaced artisan manufacturers became “petty producers” of commodities.

* British officials dealing with “increasing supply prices” for commodities exported from the colonies, faced “metropolitan money-wage or profit margin increases.” Seeking to “stabilize the value of money,” they imposed “income deflation … [on Indian] suppliers of wage goods and inputs to the capitalist sector.”

* The claims of heavily-taxed agricultural producers in India were “compressible” especially because they were located “in the midst of vast labor reserves.”

Colonialism provided British capitalists the option of cutting pay or jobs in India so as to carry out the currency exchanges the system required and to “accommodate increases in money wages” in Britain, both “without jeopardizing the value of money.”

Global economy

The book outlines post-colonial developments. Colonial arrangements persisted throughout the 19th century and collapsed after World War I, due in part, say the authors, to a worldwide agricultural crisis that peaked in 1926. The circumstances gave rise to the Great Depression. Spending for World War II led to recovery, mostly in the United States.

These were “boom years” for capitalism. The United States, confronted with increasing military expenses, turned to deficit financing. Western European countries took up social democracy and the welfare state. Some former colonies, now independent nations, sponsored agricultural and industrial initiatives aimed at relieving economic inequalities.

At that point, the centers could no longer impose income deflation on working people in the periphery to ward off loss of monetary value. Bank holdings increased and lending pressures mounted. In 1973 “the Bretton Woods system collapsed because of the emergence of inflation.” “The capitalist world of the stable medium of holding wealth …[through] the gold-dollar link” took a hit.

Next came worldwide take-over by global finance capital and neoliberalism. The Patnaiks explain that, with “barriers to capital flows” down, “state intervention in demand management becomes impossible.” “[A] regime of income deflation on the working people of the periphery” returned in order to “control inflation and stabilize the value of money.”

Concluding

This story is of continuities. One is capitalism at its start taking up with colonialism. Another is capitalism using colonialism to preserve the value of money in cross-border commercial and financial dealings. One more is the oppression and beggaring of the world’s working people to prevent inflation.

Karl Marx may have found data and other information on colonialism scarce as he studied capitalism. Additionally, his life of research and political activism may have been so full as to distract him from investigation of the colonial connection. Even so he championed international worker solidarity.

He and Engels supported India’s independence struggle. Marx defended “heroic Poland” beset by Czarist Russia. He writes to Engels that, “In my view, the most momentous thing happening in the world today is, on the one hand, the movement among the slaves in America, started by the death of [John] Brown and on the other the movement of the serfs in Russia.”

Addressing the International Working Men’s Association – the First International – in 1864, Marx reported that events “have taught the working classes the duty to master themselves the mysteries of international politics; to watch the diplomatic acts of their respective governments.”

The wreckage of people’s lives caused by capitalism now extends widely. The venue of capitalism is global, by its nature. Political support for workers and their political formations in the Global South hits at the essence of capitalist power. The promise of basic change lies in that direction, and that’s so too with alternatives to the capitalist system.

Those struggles for social justice and equality that are confined to the world’s industrial centers do target aspects of capitalism, but without far-reaching expectations. The full effort consists of: pushing for reforms that ease burdens placed upon working people, building mass opposition, and – crucially – advancing the international solidarity movement.

W.T. Whitney Jr. is a retired pediatrician and political journalist living in Maine.